[Funding alert] Observe.AI raises $125M in Series C round
The startup will use the capital to fuel development for product innovations and scale the company’s go-to-market motion and expand into international markets, and accelerate its timeframe to IPO readiness.
Intelligent workforce platformon Tuesday said that it raised $125 million in Series C funding round led by SoftBank Vision Fund 2, with participation from Zoom.
The latest round of investment brings the San Francisco-based tech startup’s total amount raised to $213 million. Existing investors such as Menlo Ventures, Scale Venture Partners, and Nexus Venture Partners also participated in the round.
Founded in May 2017 by Akash Singh, Sharath Keshava, and Swapnil Jain, Observe.AI uses artificial intelligence (AI) to transform contact centres. It embeds AI into customer conversations, and for every interaction, employees can get highly accurate, actionable feedback to improve key business metrics across every customer touchpoint. It also has an office in Bengaluru, India.
“This fresh round of funding is further validation,” said Swapnil, Co-founder and CEO. “Observe.AI is uniquely positioned with our industry-leading product innovations and offerings, robust services expertise and partner ecosystem, and intimate understanding of and execution on the evolving needs at the intersection of AI and CX.”
The startup will use the capital to fuel development for product innovations and scale the company’s go-to-market motion and expand into international markets, and accelerate its timeframe to IPO readiness, it said in a statement.
“Observe.AI has a transformative vision to deliver actionable and trustworthy AI that empowers digital-first businesses to create exceptional customer experiences,” said Priya Saiprasad, Partner at SoftBank Investment Advisers.
“We believe the company has built an intelligent, flexible platform with endless use cases, from healthcare companies seeking to enhance patient experience through to financial institutions aiming to boost revenue,” she added.
In September 2020, the company had raised $54 million in a Series B round led by Menlo Ventures.
In March 2022, Observe.AI said it recorded about 150 percent growth in its Annual Recurring Revenue (ARR). Its customer base of $100,000 or more, grew by 125 percent year-over-year.
Owing to the increase in customers, the volume of customer interactions analysed with its AI engine saw 3X increase, its AI-powered agent evaluations grew by 426 percent, and AI-powered agent coaching sessions rose by 201 percent.
Observe.AI’s customers include ResMed, Pearson, 23andMe, Accolade, Group 1 Automotive, and Southeast Trans.
Edited by Kanishk Singh